Expert: Elimination of GST akin to supporting tax cheating
KUALA LUMPUR: The proposal to eliminate the Goods and Services Tax (GST) by Pakatan Harapan will support the “cheating” of tax payments, independent political analyst Hoo Ke Ping said.
“With the Sales and Services Tax (SST), the collection was about RM18 billion, while the GST’s collection amounted to RM48 billion.
“So, the difference of RM30 billion was actually taxes that should have been paid by businesses, but have somehow managed to escape from doing so.
“If the GST is eliminated, it will be RM30 billion of the people’s money that could have been better used for infrastructure development in the country,” Hoo told the Business Times yesterday.
He was commenting on Pakatan’s Alternative 2018 Budget, which claimed that it would not only cover the revenue loss by eliminating GST, but record a RM6 billion surplus.
The opposition coalition estimated a net loss of RM25.5 billion next year in eliminating GST and reverting to pre-GST numbers.
It said the losses could be covered by increased revenue from corporate income tax due to a consumption boom.
Hoo said it was easier said than done as Pakatan Harapan was not governing the country.
“If you ask me, this is just a move to sabotage the GST’s implementation as Pakatan has most to gain from it.
“Look at the track record of the states under their rule. It is even worse there.
“There are many instances where the Federal Government is funding the projects in the states governed by Pakatan, and federal agencies or businesses have to pay the states.”
Universiti Utara Malaysia Asian Research Institute of Banking and Finance (Aribf) director Dr Irwan Shah Zainal Abidin refuted claims that GST only benefited the rich.
From 2009 to 2014, Irwan said, the average household income of the B40 group had increased by 76 per cent, whereas for the M40 group, the increase was almost 60 per cent.
“Applying the Gini Coefficient Index (GNI), Malaysia’s GNI has improved to 0.399 last year from 0.401 in 2014.
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KOTA BARU: Pas will do all it can to stop Pakatan Harapan from winning any seat in the state in the 14th General Election.
Menteri Besar Datuk Ahmad Yakob said to do so, Pas would field its candidates in all the 45 state and 14 parliamentary seats.
“We do not mind three-cornered fights and the party leadership has agreed to this,” said Ahmad, who is also deputy Pas spiritual leader.
He said there would be new faces in the line-up, with some familiar faces retained for the upcoming election.
Ahmad dismissed DAP’s claims that the Pas-led state government had failed to manage the state.
“They only do so to cover up their weaknesses by hurling allegations against others,” he said.